Realtors ® are being urged to educate buyers about online valuation methods. DigitalJournal says panelists at the 2014 Realtors ® Conference & Expo discussed the challenges of helping buyers and sellers understand the difference between actual appraisals and automated valuation models (AVMs), found on popular Zillow or elsewhere.
John Anderson with Twin Oaks Realty Inc., in Crystal, Minnesota, said “AVMs are designed to help consumers become aware of current market conditions and availability of property and are not meant to be an appraisal. Realtors® have a responsibility to educate consumers about the differences in valuation models and available data. The lines can be blurred between everything that is out there.”
Melanie McLane, Jackson Real Estate Group, Jersey Shore, PA appraiser, said, “An appraisal is a snapshot of a certain period of time that depends on several economic factors. Values change and it’s up to Realtors® to work with their clients to manage their expectations and serve in their best interest.”
In February 2012, NAR adopted the Responsible Valuation Policy, which serves as their policy guide in this arena.
Regular Daily Business News/MHProNews readers know that nline valuation is likely to continue to evolve, and could be part of the future that the recently released CBRE/Genesis study suggested will see a large percentage of purchases being made online. ##
(Cartoon credit: Braddock posted on Brokerology)
